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AI Supply Chain Revenue Boosts Taiwan Stocks Amid Geopolitical Tensions
Electronic Technology · Semiconductors · economic_daily · 2026-09-09
Taiwan stocks remain resilient as AI supply chain revenue shines, despite rising oil prices and inflation concerns stemming from Middle East conflicts.
What Happened
AI Supply Chain Momentum: AI computing is expanding from the cloud to edge devices, with Arm's new platforms utilizing TSMC's 2nm process technology. Meanwhile, the semiconductor testing and packaging sector, including companies like Powertech and KYEC, reported strong August revenue growth driven by AI and high-performance computing demand.
Market Environment and Risks: Escalating Middle East tensions have pushed Brent crude oil prices toward the $100 mark, fueling market concerns over inflation and Federal Reserve interest rate policy. While Taiwan stocks have benefited from a stronger New Taiwan Dollar and foreign capital inflows, investors remain cautious of geopolitical risks and potential unwinding of carry trades.
Technical Analysis: The Taiwan Weighted Index maintains a bullish moving average alignment and held above the 5-day moving average despite recent volatility. As long as the 5-day support holds, the market is expected to maintain a steady upward trend, though technical indicators suggest a high-level consolidation phase.
Investment Strategy: Market capital is currently focused on semiconductor equipment, probe cards, and IC design firms with strong revenue growth. Investors are advised to adopt a 'buy on dips' approach rather than chasing rallies, with a long-term focus on TSMC's advanced packaging, thermal management, and high-dividend financial stocks.